On a Singapore used car listing, depreciation is roughly what the car costs you per year of COE remaining. It is the price minus what you would get back when the car is deregistered (such as the PARF rebate), divided by the years of COE left. A lower figure means cheaper ownership per year, which is why buyers compare it.
How it is worked out
Take the selling price, subtract the rebate value you would expect when the COE ends, and divide by the remaining COE life in years. Listing sites show this figure for you.
Why it matters more than price
A cheaper car with little COE left can cost more per year than a dearer car with many years left. Depreciation puts them on the same footing.
Low depreciation does not mean a bad car
A low figure can simply mean a well-priced car. In August 2026 one of our buyers chose a keenly priced Toyota Vellfire, and his independent inspection found it in excellent condition. Always inspect, whatever the price.
Related: Buy a used car from Star Performance Motor. Official rules and figures: LTA OneMotoring.
Frequently asked questions
Is a lower depreciation always better?
It means lower cost per year, but condition still matters. Pair it with a pre-purchase inspection.
Does depreciation include insurance and road tax?
No. It covers the car's value over its remaining COE only.
Where can I compare depreciation?
On listing sites such as sgcarmart, which show the figure for each car.